By Becky Usman

In an effort to address the potential risks associated with contactless payments, the Central Bank of Nigeria (CBN) has introduced new transaction limits. According to a circular titled “Transaction Limits on Contactless Payments” issued by the CBN’s Director of Payment System Management Department, Musa Jimoh, a daily limit of N50,000 has been set for contactless payments made through bank accounts or digital wallets.

The circular also specified that each individual transaction should not exceed N15,000 for contactless payments. Transactions exceeding these limits will require additional verification and authorization, in accordance with the existing Know Your Customer (KYC) requirements and electronic payment channel limits.

The CBN emphasized that transactions exceeding the daily cumulative limit must be conducted using contact-based technology, rather than contactless methods. Contactless technology enables payment instruments such as prepaid, debit and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices to be used without physical contact with payment terminals.

The implementation of these transaction limits aims to strike a balance between the convenience and efficiency of contactless payments and the need for enhanced security measures. By defining these limits, the CBN aims to mitigate potential risks and ensure a safe and secure payment ecosystem for users.